How Car Accident Settlements Work in New York

New York's No-fault car accident insurance system requires drivers to carry personal injury protection (PIP) coverage. This system ensures that each driver’s insurance company covers their medical expenses and lost wages, regardless of who caused the crash.

This system streamlines the process of obtaining compensation for injuries. It eliminates the need to determine fault before a claim can be settled. It's designed to provide quick payouts to injured parties and reduce the number of lawsuits. However, it doesn't cover property damage or pain and suffering.

When a car accident occurs, the injured parties file a claim with their own insurer under their PIP coverage. The insurer then evaluates the claim and disburses funds up to the limit of the policy. PIP coverage in New York typically includes a minimum of $50,000 per person. Once approved, the insurance company directly pays the settlement amount.

Does an attorney need to negotiate for a PIP settlement?

A lawyer typically does not need to negotiate with your insurance company for a PIP claim. However, there are sometimes disputes over the coverage, such as disagreements about the extent of medical treatment or the amount to be paid. In this case, having a lawyer can be beneficial.

A lawyer can help ensure that your insurance company honors the terms of your policy and provides the appropriate compensation. They can also assist if your insurance company denies your claim or offers an insufficient amount. If necessary, an attorney can pursue legal action.

What kind of damages do 3rd party car accident settlements pay for?

Like a PIP settlement, a 3rd party settlement pays for medical expenses and lost wages. However, it also pays for property damage and non-economic damages (e.g., pain and suffering, mental trauma, and emotional anguish).

Additionally, if you lost a loved one in a car accident, you may pursue wrongful death damages. That includes funeral expenses, loss of consortium, and loss of future earnings.

In New York, the legal thresholds for serious injuries include a set of specific conditions that must be met to step outside the No-Fault system. These thresholds include:

• Significant disfigurement.
• Broken bones.
• Permanent limitation of use of a body member or organ.
• Limitation of use of a body function or system.

Additionally, if the economic losses exceed the basic No-Fault coverage limit, which is typically $50,000, you may pursue a 3rd party claim.

Should I accept the first settlement offer I receive?

The at-fault party’s insurance company may offer a lowball settlement in hopes that you’ll accept it and close out the case.

It’s always best to let an attorney negotiate for a fair settlement before you accept one. Once you accept a settlement, you’ll be barred from pursuing additional damages for your car accident claim. So, it’s recommended that you wait until you have a settlement offer that adequately compensates you.

In the negotiation process between a car accident lawyer and the at-fault party's insurance company, the lawyer first gathers all relevant evidence. That includes medical records, police reports, crash scene evidence, and witness statements.

They then submit a demand letter to the insurance company, outlining the injuries, the impact on your life, and the compensation being sought. The insurance company reviews the demand and either accepts it, rejects it, or makes a counteroffer.

This initiates a series of negotiations between the lawyer and the insurer. They may go back and forth to reach a settlement that adequately compensates you while considering the policy limits and the strength of the evidence. If an agreement is reached, the case is settled out of court.

What happens if my attorney can’t reach a settlement agreement?

If a settlement can't be reached between your attorney and an insurance company, the case may proceed to litigation. Your lawyer will file a lawsuit on your behalf and initiate a court case. The process involves filing legal documents, discovery (where both parties exchange evidence), and possibly depositions.

As the case progresses, there may still be opportunities for settlement negotiations. Most cases are resolved before reaching trial. If a settlement is still not achieved, the case will go to trial.

What if my case goes to trial?

If your car accident case goes to trial in New York, your attorney will present evidence and testimony to prove the defendant's liability and the extent of your damages. This may include medical records, expert testimonies, and witness statements. The defendant's attorney then presents their case, possibly challenging the evidence and the extent of your claimed damages.

After both sides have presented their arguments and cross-examinations, closing arguments are made. The jury deliberates and then delivers a verdict, deciding on liability and, if applicable, the amount of compensation you are entitled to. If the jury finds in your favor, the court will enter a judgment against the defendant for the awarded amount.

Injured in a collision in New York? Get a strong legal advocate on your side who knows how car accident settlements work. A Law.com Premier Attorney will thoroughly investigate your crash and help you get the compensation you deserve.

Best of all, you can get legal representation without paying upfront fees. That’s because our verified attorneys in New York operate on a contingency fee basis and only get paid if they win your case. To get started, contact a lawyer in New York for a free consultation.